AIRPORT NEWS

Cologne Bonn plans build as it beats 10 million

Right: Cologne Bonn is planning an extension of the shop and catering concourse in Terminal 1 this year

Cologne Bonn Airport has announced that its Terminal 1 will get a Euro 13 million (US$19 million) makeover this year, including an extension of the shop and catering concourse, and an increase in the number of central security control points from 10 to 18 lanes.

The aim of the new security system is to improve passenger through-flow, and the new checkpoints are due to be operational by November 2008. “We’re already known as the airport where everything is close at hand, and now we want to become the quickest airport with the shortest waiting times,” says Michael Garvens, chief executive officer of Cologne Bonn Airport.

The airport’s Terminal 1 will be extended in two phases by more than 1,100m². It will include two new rows of shops on both sides of the central control. Construction work on the first phase will start in March 2008 with the handover to the tenants in the summer of 2008. Work on the second phase is planned to start in late October 2008 and will be completed at the end of March 2009.

The airport passed the 10 million passengers milestone in 2007 as passenger traffic grew by 6%. The airport is now the sixth largest airport in Germany, overtaking Stuttgart.

Low-cost airlines are the main driver behind the airport’s growth. Low-cost traffic to Eastern Europe, Northern Africa, Greece and Turkey has grown particularly fast. Garvens foresees the introduction of long-haul, low-cost flights soon. “The low-cost, long haul segment is heading slowly in the right direction,” he says.

QinetiQ’s SPO system destined for US airports

Right: QinetiQ's SPO threat detection system measures the waves naturally emitted by the human body and determines if there are any “cold” objects, such as metals, plastics and ceramics concealed under a person’s clothing

The US Transportation Security Administration (TSA) has chosen QinetiQ’s SPO threat detection system to provide enhanced security technology for US travellers.

The camera-based system uses advanced millimeter wave technology combined with sophisticated software algorithms to screen people one at a time. The technology detects and measures the waves naturally emitted by the human body and determines if there are any “cold” objects, such as metals, plastics and ceramics concealed under a person’s clothing. Suspicious objects trigger a red light on the display monitor, prompting the operator to search the individual.

TSA has purchased 12 SPO units from QinetiQ under an ID/IQ (Indefinite Delivery/Indefinite Quantity) contract that allows for additional purchases over the next two years.

The agreement follows recent operational trials of SPO technology at the Staten Island ferry terminal and Pier 90 in New York City. Similar technology was deployed last fall at Phoenix Sky Harbor International Airport, but TSA has not yet announced which airports will receive the first 12 units.

QinetiQ claims the system is particularly suited to busy airport environments because it can detect concealed threats, such as explosive devices, from many metres away and there is no need for passengers to slow their pace.

“The contract with the TSA is a great example of the synergies that have been made possible through the development of QinetiQ North America,” says Graham Love, group chief executive of QinetiQ. “We expect to see further significant deployments of this and other QinetiQ security technologies to worldwide markets in the future.”

FIFA’s soccer store debuts at Changi

Right: World's first FIFA store opens at Singapore Changi Airport's new Terminal 3

International football's governing body, FIFA, has launched its first global store selling jerseys, T-shirts, balls and other official merchandise at Singapore Changi Airport's newly-opened Terminal 3.

The store sells FIFA- and World Cup-branded items, and similar outlets are planned at airports in London, Tokyo and Los Angeles, it said.

"FIFA and its various World Cup events have become part and parcel of people's everyday lives,” says Mohamed bin Hammam, president of the Asian Football Confederation and a FIFA executive member. “The official store will be a great opportunity to reach out to football fans across the length and breadth of the world."

The store is managed by Singapore-based Global Brands Group, which was appointed by FIFA in 2005 to be the worldwide exclusive licensing representative until 2014.

Iran plans private future for Qeshm

Iranian authorities are reportedly seeking a private operator to manage Qeshm International Airport in southern Iran. The airport, which dates back to 1996, is served by commercial air services linking Qeshm Island to the United Arab Emirates and Tehran. Qeshm Free Zone Organization (QFZO) has committed to providing additional land for expansion in future.

China Eastern Studying Air China Tie-Up Proposal

China Eastern Airlines said it had received a proposal for a "strategic partnership" with Air China that could bring it a cash injection of USD$1.9 billion and involve a tie-up between many of the airlines' operations.

China Eastern, the country's third largest airline, said it was studying the proposal, and did not give any sign that it might modify its strong opposition to accepting Air China as a strategic investor.

"The board of our company is now dealing with this proposal, and we will announce our decision when it has been made," China Eastern said in a statement on Sunday.

The proposal was made 10 days after minority shareholders in China Eastern rejected a USD$920 million plan for Singapore Airlines and Singapore investment agency Temasek to buy 24 percent of China Eastern.

The parent group of Air China, China National Aviation Corporation (CNAC), proposed that it and China Eastern's own parent group buy a placement of 2.98 billion new Hong Kong-listed H shares in China Eastern, the statement said.

The shares would be bought for no less than HKD$5 each, compared to China Eastern's last traded price in Hong Kong of HKD$6.75. CNAC, which already owns 3.9 percent of China Eastern, would end up with a stake of under 30 percent.

The share issue would inject at least HKD$14.9 billion (USD$1.9 billion) of cash into China Eastern, reducing its debt-to-asset ratio from 94.33 percent to 77 percent, China Eastern quoted CNAC's proposal as saying.

CNAC also suggested that regardless of whether or when its equity investment went ahead, Beijing-based Air China help Shanghai-based China Eastern form an "operations hub" in Shanghai to strengthen the use of its route network and other resources.

The two airlines would consolidate their cargo operations in a joint venture, and cooperate in areas such as sharing flights, frequent flyer programs, maintenance and ground service.

"We believe fully carrying out this proposal would bring concrete cooperative benefits to both sides, while benefiting shareholders, the companies, employees and society," CNAC was quoted as saying.

CNAC calculated that its investment in China Eastern would allow the airline to save at least CNY776 million yuan (USD$107 million) in annual interest expenses, and bring the two airlines around CNY5 billion annually in synergies from higher revenues and lower costs, China Eastern said.

The alliance would help to make Shanghai and Beijing major air transport hubs in northeast Asia, while boosting the airlines' competitiveness in global markets, CNAC added.

When shareholders voted on the Singapore plan, CNAC had already said it would offer to pay at last HKD$5 per share for a major stake in China Eastern, making the Singapore offer of HKD$3.80 per share look unattractive.

After the shareholder vote, China Eastern chairman Li Fenghua insisted he would not consider Air China as a strategic investor, saying an alliance with the flag carrier would not benefit his airline and he would continue pursuing the Singaporean tie-up.

Singapore Airlines, however, has responded ambiguously, saying it will not walk away from its deal but also that it will not get into a bidding war.

Further complicating the situation, Hong Kong's Cathay Pacific Airways, a partner of Air China, has said it is willing to support any bid for China Eastern by the Air China group, though CNAC's proposal did not mention Cathay.

Some China Eastern executives say they think CNAC may be content to use its proposal to block an alliance between China Eastern and Singapore Airlines, regardless of whether any part of its proposal is actually implemented.

"This is just a gesture," a China Eastern official, speaking on condition of anonymity, said of the proposal. He declined to comment on what the airline's formal response would be. (Reuters)

Jet Interested In bmi Majority Stake - Report

ndia's Jet Airways has approached unlisted British airline bmi's majority shareholder and chairman Sir Michael Bishop about the sale of his stake, a newspaper reported.

Jet expressed its interest before Christmas in conjunction with a Middle-Eastern airline, believed to be Emirates, the Sunday Telegraph report said, without naming its source.

The approach to Bishop, who owns 50 percent plus one share in the private company part-owned by Lufthansa and SAS, was made through a third party and no formal meetings have taken place, the article said.

Both Virgin and British Airways have previously expressed an interest in buying the stake, the paper said. (Reuters)

Best Air launches operations with Dhaka-Chittagong service

14 January 2008 marked Best Air’s inaugural passenger flight from ZIA International Airport Dhaka to Shah Amanat International Airport Chittagong.

The passenger flight launch was inaugurated by Mr. M. Haider Uzzaman the Chairman of Best Air, His Excelency Mr. Abdul Latif Ali Al Mawash Ambassedor of Kuwait and His Excellency Mr. Chatermpol Thanchitt Ambassador of Thailand.

The airline will operate four daily flights on the Dhaka Chittagong route, two flights from Dhaka to Chittagong and two flights back from Chittagong.

With valet service, individual customer care program, escort service, meal choice and unique online ticket reservation Best Air is set to become the predominant airline in Bangladesh

BA's longhaul flights back to normal after Boeing accident at Heathrow

British Airways is planning to operate all of its longhaul departures from London Heathrow and up to 90 per cent of its shorthaul departures today (Friday, January 18) but is strongly advising customers to check ba.com for the latest flight information before leaving home.

Due to the disruption on Thursday January 17 a number of aircraft, pilots and cabin crew are out of position and this is having a knock-on effect on some shorthaul services on Friday.

A number of flights into Heathrow will also be cancelled throughout Friday January 18. All flights to and from London Gatwick are expected to operate as normal.

Customers due to travel on a cancelled flights will also be able to refund or rebook their flights. This can be done via the airline's website or by calling British Airways.

"Any customers on cancelled flights are urged not to come to the airport as this will cause additional congestion," says BA in a statement.

BA has confirmed yesterday (17 January 2008) that a Boeing 777, registration GYMMM operating flight BA038 from Beijing to Heathrow was involved in an incident at Heathrow airport.

British Airways chief executive Willie Walsh said: "We are very proud of the way our crew safely evacuated all 136 passengers on board with only three minor injuries." There were three flight crew and 13 cabin crew on board.

Sheikh Ahmed opens three hotels in Dubai Festival City

His Highness Sheikh Ahmed Bin Saeed Al Maktoum, President of Dubai Department of Civil Aviation and Chairman and CEO of Emirates Group, has formally opened three luxury properties in Dubai Festival City at a ceremony on Thursday (January 17, 2008).

In the presence of officials, businessmen and hotel management, including the DTCM Director General, Mr. Khalid A bin Sulayem, His Highness Sheikh Ahmed cut the ceremonial ribbon to symbolically declare the luxury properties open to business. The hotel staff accorded a warm welcome to the VIPs.

Also present were Mr. Sultan bin Mejrin, Director General of Dubai Land Department, Mr. Juma bin Humaidan, Assistant Director General of Dubai Land Department, Mr. Issam Al Humaidan, Dubai’s Attorney General, and Mr. Eyad Ali Abdul Rahman, DTCM Executive Director Media Relations and Acting Director Business Development.

On arrival, His Highness Sheikh Ahmed was welcomed by Mr. Abdullah Al Futtaim, Chairman of Al Futtaim group, and Mr. Omar Al Futtaim, CEO of Al Futtaim Group, owners of the three properties and Dubai Festival City.

The elegant InterContinental Dubai Festival City, superior upscale Crowne Plaza Dubai Festival City and the lavish long-stay InterContinental Residence Suites Dubai Festival City are the latest luxury hotels to open in Dubai. All the three properties have been completed in just three years. The project is the largest in the history of IHG; having three properties open simultaneously within the same location is a first for the group.

Together with the two hotels and InterContinental Residence Suites Dubai Festival City, the group will offer more than 1,000 rooms within the multi-billion dirham Dubai Festival City development. Both the hotels are internally connected to the Festival Waterfront Centre, the 550 retail outlets and 90 restaurants and cafes are just a minute’s walk away. Two 18-hotel championship golf courses are also close to hand, as is a scenic stroll along the waterfront promenade, connecting to the 100 berth Festival Marina.

His Highness Sheikh Ahmed toured the 36-floor InterContinental Dubai Festival City which is a visually iconic example of modern architecture and offers stunning views of the city’s skyline, picturesque Dubai Creek and the new Festival Waterfront Centre. There are 121 suites, three Presidential Suites and one Royal Suite. The brand’s iconic Club Intercontinental is located on the 26th floor offering panoramic views of Dubai.

The Crowne Plaza Dubai Festival City is a 316-room property, including 16 suites and two Presidental Suites, is designed for business travelers.

The InterContinental Residence Suites Dubai Festival City has 212 stylish high-rise apartments, encompassing studios, one, two and three bedroom suites and a stunning royal suite spread over two floors with private elevator.

ITB Berlin relaunches website

Following an extensive technical and graphical relaunch the ITB Berlin is now ready with an updated logo and a revised website. “The internet is the most important instrument for communication and marketing for the ITB Berlin”, according to David Ruetz, Senior Manager and ITB Berlin Director. “Our aim is always to be one step ahead of the market and its requirements. That is why, in addition to visually redesigning the web pages new modules have been included and the navigation structure has been made easier to use. As a result all the various target groups can find the relevant information more quickly in their respective navigation areas. New features include improved, faster access via the newsticker, and quicklinks that give direct access to information about the ITB Berlin for specific target groups.”

The new download centre is yet another outstanding service. “With this download centre we can provide our customers with the basis for successfully marketing their appearance at the ITB Berlin”, says David Ruetz, emphasising the importance of this convenient service.

“The optimised web portal of the ITB Berlin is setting the standard at Messe Berlin, and will be introduced in turn as the websites for each of the company’s events are relaunched. In addition to an attractive new design we have also ensured that access is barrier-free”, explains Dr. Jana Dewitz, Divisional Director Marketing & Media at Messe Berlin.

The internet pages can now be read and operated by any user, including those with visual handicaps. The ITB Berlin website complies with the guidelines laid down in the “Barrier-free Information Technology Regulation” (BITV), making it largely accessible to people with various disabilities. Suitable text recognition programmes have also been introduced. “Another advantage of the barrier-free internet: in future content from the ITB Berlin portal can be easily displayed on mobile terminals”, says Dr. Dewitz, referring to some of the additional benefits of this development.

Emirates abandons SriLankan management, to retain 43.6% stake for the moment

Emirates has announced that it will not renew its existing ten-year contract for the management of SriLankan Airlines, the national carrier of Sri Lanka. The management contract expires at the end of Mar-08.

Tim Clark, President Emirates Airline and Managing Director Sri Lankan Airlines stated: "Emirates has notified the Government of Sri Lanka that it will not be renewing the Shareholder's Agreement which expires on 31st March 2008 and accordingly, with effect from 1st April 2008, management control of Sri Lankan Airlines will pass to the Government of Sri Lanka. Emirates will continue to manage the Company until 31st March 2008. Emirates will also retain its 43.6% equity in the Company for the time being, and continue to have a Board presence."

Revamped branding for airberlin

The airberlin group has revised it brand identity and launched a new advertising campaign. The repositioning of the airberlin group as a global business is associated with the group’s acquisitions, which is to be reflected in the airline’s image.

With immediate effect, the airberlin logo will be a combined mark, consisting of a figurative and a word element, and will be used internationally. The company name will be in lower case and written as one word. The colour HKS15 remains the same, but the font is now "Chalet airberlin". The new claim is: "airberlin. Genau deine Airline." (airberlin. Your kind of airline.)

The airberlin.com website has already been revised and features the new image. The first print advertisements will appear from 07-Jan-08. The outdoor advertising campaign will start on 11-Jan-08 in 21 German cities, as well as in Vienna and Zurich. The television commercials will run from 19-Jan-08. The first aircraft bearing the new livery will be rolled out in Jan-08, with the other aircraft being gradually updated throughout the year.

Joachim Hunold, airberlin’s CEO commented: "On account of our growth in recent years, passengers now benefit from a wider range of flights and a dense network within Germany, taking them to major cities throughout the world and to holiday destinations. Business travellers should feel just as comfortable on board as families, enjoying the same personal attention on longhaul and on short-haul flights. This makes airberlin the perfect airline for every passenger, meeting individual travel preferences and service expectations. The new branding emphasises this claim."

Monarch Airlines carries 3.7 million scheduled passengers in 2007

Monarch Airlines celebrated a record-breaking year carrying 3.7 million scheduled passengers during 2007, a 15.8% year-on-year increase.

The launch of eight new routes during the year helped passenger numbers surge with the introduction of Birmingham to Ibiza; London Gatwick to Ibiza and Murcia; London Luton to Almeria, Ibiza and Larnaca as well as Manchester to Ibiza and Jerez services.

Capacity increases on a number of popular routes and the launch of further new services in 2008 is expected to further stimulate growth for the airline in 2008. Following on from the successful launch of services from London Luton to Larnaca in Mar-07, the LCC will continue its expansion to the Eastern Mediterranean, as well as add a new service from Manchester to Murcia in Feb-08.

Passenger traffic for Dec-07 also improved 10.6% year-on-year to over 184,500 passengers.

ISLAND AVIATION GOES REGIONAL

Island Aviation has received operations permit from the Government of India to operate schedule flights to Trivandrum, India. Special ceremony was held on 07th January 2008 at Nasandhura Palace Hotel on 07th January 2008 to officiate the handing over of this permit to Island Aviation.

Executive Director at the Civil Aviation Department, Mr. Mahmood Razee handed over this permit to Island Aviation. Mr. Bandhu Ibrahim Saleem – Managing Director of Island Aviation received this on behalf of the company. Mr. Razee and Mr. Saleem made their statements at this ceremony. Mr. Mahmood Razee in his speech said, quote "IAS is an operating airline meeting the aeronautical requirements stipulated under the Maldivian Air Legislation. The choice of jet or turboprop for sector lengths of about 500km is fundamentally driven by economics. IAS by choosing to commence services with a turboprop airliner has also addressed some of the other elements of the business for this level of stage lengths” unquote.

Managing Director of Island Aviation, Mr. Bandhu Ibrahim Saleem stated in his remarks, quote “To realize our goal, we will continue to invest in our expansion this year as well” unquote.

The first flight from Male’ to Trivandrum will be operated on 25th January 2008. Dash8 aircraft will be used for this operation and daily flights will be operated between Male’ and Trivandrum. All the departures from Male’ will be at 1530 hrs everyday.

AIRPORT NEWS

Indian government seeks low airport fees

The Indian government has asked private companies developing new airports at Hyderabad and Bangalore not to make flying out of them prohibitively expensive for passengers.

Agreements currently in place allow an airport development fee of US$17 to US$23 to be charged per passenger, however the aviation ministry has requested that the GMR and Siemens Project Venture-led consortias wait until the delayed Indian Airport Economic Regulatory Authority (see: Regulator planned for India’s airports) is in place to decide on a more ‘reasonable’ amount.

With fuel and congestion surcharges and other fees plus rising fares, the cost of flying from these airports could potentially become too expensive for passengers. “As it is there are serious connectivity issues. With road networks still incomplete, the airports are nearly a two-hour drive away from the cities and are costlier to get to. If in addition, passengers have to pay up to US$25 (Rs 1,000) more for flying out, the reaction could be adverse,” says a senior official

Mumbai airport to be revamped by year-end

Right: The first phase of a facelift of Chhatrapati Shivaji International Airport should be complete by the end of this year

The Mumbai state Government has prioritised US$13.2 million for a facelift of Chhatrapati Shivaji International Airport.

The project will be undertaken by airport operator, Mumbai International Airport (MIAL), and will be carried out in two phases: Phase one will see the upgrade of Terminal 2A and phase two will renovate Terminals 2B and 2C. Phase one is scheduled for completion by the end of this year.

The programme also includes upgraded runways, 106 aircraft parking stands, 51 boarding bridges and 316 check-in counters.

Changi seeks stakes in overseas airports

Right: Changi International Airport is part of a network of airports owned by Changi Airports International

Changi Airports International, the overseas investment unit of Singapore’s main airport operator, plans to buy stakes in as many as 15 airfields, says chief executive officer Chow Kok Fong.

Chow says the company aims to manage US$700 million of airport assets within the next three years and that overseas revenue in five years may climb to as much as 20% of sales from less than 5% now.

The company wants to tap growth in the Middle East, China and India, where governments are upgrading airports as more people fly. Global passenger air traffic is projected to jump 29% by 2011, threatening to overwhelm airports, according to an October 2007 forecast by the International Air Transport Association.

The company secured its first direct investment in China last month, acquiring a 29% stake in the Nanjing Lukou International Airport for US$138 million. Funding for future purchases will mainly come from its parent, says Chow.

“We are looking at several deals, which we hope will crystallise over the next three years,” he adds. “A lot of the growth that we expect in China will come from the central and western region. So, we will be spending a lot of our efforts in that region.”

China Scurries To Contain Mice On United Flight

The United States, concerned about tainted imports from China, has exported its own batch of potentially harmful goods to Beijing in the form of mice on a flight from Washington, state media said on Tuesday.

Chinese inspectors found eight mice, dead and alive, on a United Airlines flight to Beijing after the airline reported the stowaways to local quarantine officials upon landing on Sunday afternoon, Xinhua news agency said.

The report prompted an "emergency team" to rush to the aircraft, Xinhua said, to "put rat poison and mouse traps at every possible corner on the aircraft, including the cockpit".

"Eight mice, dead and (alive), were found at last... hidden in pillows," the agency said.

The surviving mice were sent to labs for testing, it said.

The incident was reported in most newspapers on Tuesday, citing experts warning of dozens of fatal viruses that the mice could spread, and the risk of deadly accidents from them chewing through the plane's wiring and circuits.

"We are taking this matter seriously and have begun a full investigation with the authorities to determine how this happened and ensure it is resolved," United Airlines said in a statement.

"It would be inappropriate for us to comment further at this stage as the investigation is currently under way."

China has been rocked by a number of quality scandals involving food, toys and drugs in recent months, but has repeatedly accused foreign media of biased reporting, while making a point of naming foreign companies it claims have sub-standard product problems. (Reuters)

China Eastern Shareholders Sink Singapore Air Deal

China Eastern Airlines shareholders rejected a deal to sell a 24 percent stake to Singapore Airlines for USD$920 million, opening the door for bigger rival Air China to make a play for the country's third-largest carrier.

Analysts say loss-making China Eastern, squeezed by record fuel prices, would return to the negotiating table with Singapore Air and its parent Temasek to try and get a better deal.

A less favored option would be to submit to the Air China group's advances.

Singapore Airlines, the world's most profitable airline, which had hoped to gain access through the acquisition to China's fast-growing air travel industry, said in a statement it was disappointed but would continue to build a relationship with China Eastern.

The collapse of a deal two years in the making and blessed by the Beijing government highlights the unpredictability of a Chinese corporate scene that usually bows to politics.

Cathay Pacific, which already has an alliance with Air China, has bolstered the airline's case by saying it would seriously consider teaming up on a joint investment in China Eastern.

"There's not much difference between domestic airlines in terms of management expertise and branding," China Eastern Chairman Li Fenghua told reporters after minority shareholders torpedoed the Singapore Air deal.

"In this case, one and one would not equal more than two."

Air China's parent, China National Aviation Corporation (CNAC), has said it will submit a rival offer for China Eastern within two weeks.

The battle over an airline that has made losses in three of the past five years underscores the lure of an industry dominated by three players but which is growing at more than 16 percent a year ahead of this summer's Beijing Olympic Games.

"Air China seems committed to making a higher bid. But Singapore would have brought a lot of international management expertise to China Eastern," said Kelvin Lau, analyst at Daiwa Institute of Research.

CNAC, which owns 3.9 percent of China Eastern but which has more than 12 percent of its Hong Kong stock, had argued for weeks that the sale to Singapore was being done on the cheap -- a perennial worry among domestic investors fearing a fire-sale of Chinese assets to foreign firms.

Shares in China Eastern and Singapore Airlines were suspended on Tuesday, pending the vote. Air China ended the day down 3 percent as investors cashed out of its recent rally.

Days ahead of the vote, CNAC had signaled it would try to derail the agreed HKD$3.80 per share sale to Singapore Air, saying it would offer at least HKD$5 a share. Singapore Air and China Eastern insisted their deal was fair at six times the airline's end-2006 book value.

Analysts say Air China feared the creation of a strong competitor based in the commercial hub of Shanghai -- where Air China is traditionally weak.

Some said investors may now favor a tie-up between China Eastern and Air China, the world's most valuable airline by market capitalization, especially if Cathay gets on board.

Others said Singapore Airlines and Temasek could be persuaded to return to the table with a sweetened bid.

"With the deal vetoed, SIA's out of the picture for the time being. Obviously, that's a positive for both Cathay Pacific and Air China -- less competition," said CLSA analyst Adrian Lowe.

"My sense is they'll probably give up, given how things have played out, (but) some minority shareholders from China Eastern are hoping for a bidding war." (Reuters)

AirAsia launches direct flights to Yogyakarta

Beginning 30 January 2007, AirAsia will commence direct flights to Yogyakarta, Indonesia from Kuala Lumpur, documenting its entry into its 13th destinations in Indonesia. The Airline of the Year 2007 has the most extensive service into Indonesia sprawling across cities such as Bali, Balikpapan, Banda Aceh, Bandung, Batam, Jakarta, Medan, Padang, Palembang, Pekan Baru, Solo, Surabaya and now Yogyakarta.

AirAsia will begin with four (4) flights per week to Yogyakarta departing from LCC Terminal, Kuala Lumpur on Monday, Wednesday, Thursday and Saturday. The airline’s new 180-seater Airbus A320 will be deployed for the route.

Yogyajarta is a city with outstanding historical and cultural heritage. Renowned for being the centre of classical Javanese fine art and culture, Yogyakarta is also known as one of Indonesia’s most important centres for higher education. A visit to Kraton, the Royal Palace of the Sultan, will have one mesmerized with Gamelan, the beautiful Javanese traditional music and Ramayana ballet.

Tony Fernandes, Group Chief Executive Officer of AirAsia, said, “Yogyakarta has long been on our list of destinations that we want to fly to and it certainly adds value to our route network. The new service into Yogyakarta augurs well for both countries in promoting the exchange of tourist, labour, and small and medium enterprise traffic. In addition, year 2008 marks an exciting year for Indonesia as it is Visit Indonesia Year and we are excited to be able to play a key role in promoting the beautiful city and people of Yogyakarta to the rest of the world.”

“By means of AirAsia’s extensive route network in ASEAN, amazing low fares and high safety standards, we are optimistic in boosting tourism economy for all the countries we fly to, and specifically in this case, we are also looking forward to strengthening our domestic routes in Indonesia via our hub in Jakarta.”

easyJet to maintain one bag rule

The Government recently announced that on 7 January 2008, the restriction of one piece of hand luggage will be lifted at 22 of the UK’s airports. This will leave 40 key commercial airports with the one bag rule still in place, including easyJet bases at Belfast, Bristol, East Midlands, Liverpool and Luton. In addition, some of the BAA airports, notably Gatwick, have applied to the CAA for a price increase.

easyJet has decided to maintain its policy of allowing each UK departing passenger to carry one piece of hand baggage (dimensions up to 55x40x20cm with an unlimited weight allowance). Passengers are advised to check this website for more information on baggage allowances, but can be assured that by following this simple policy, they can continue with their journey as normal.

Andy Harrison, easyJet’s Chief Executive, commented: “There is massive scope for customer confusion in an environment where UK airports are adopting different policies. The only way to maintain a simple and standard policy is to maintain our one bag policy.”

“Also some of the major BAA airports are using the relaxation of the one bag rule as a pretext to further increase passenger charges. They increased charges when the restriction was introduced and now they want to increase charges again to remove it! easyJet will continue to resist such attempts and calls on the CAA for its full support”

Singapore Airlines starts operations at Changi Terminal 3

On 9 January 2008, Singapore Airlines will be the first carrier to operate from Changi Airport Terminal 3. Operations will start close to noon, with SQ 001 being the first flight scheduled to arrive at the new terminal at approximately 1150 hours.

SQ 318, bound for London, will be the first flight to depart from Terminal 3 at 1250 hours. Terminal 3 check-In counters will be operational from 0900 hours. All passengers departing Singapore for the UK will leave from Terminal 3.

With effect from 9 January, Singapore Airlines will operate from both Terminals 2 and 3, and the commencement of services from the new terminal marks an expansion of Singapore Airlines operations at Changi Airport.

“The addition of Terminal 3 is another jewel in the crown for Changi as it cements its position as a leading international hub. Singapore Airlines is excited to be part of its growth, and we are confident that the new terminal will complement our operations at Terminal 2,” said Singapore Airlines Senior Vice President Product and Services, Yap Kim Wah.

“Customers will now enjoy the benefits of having access to two world-class terminals – state-of-the-art facilities, modern design, thoughtful service and of course, more choice.

Needless to say, we are extremely honoured to be the first airline to start using Terminal 3, and we’re sure our customers are equally looking forward to being the first to enjoy such a world-class facility,” said Mr Yap.

With the expansion of services, customers departing from Changi Airport will check-in at Terminal 2 or 3 for their flights, depending on their destination.

Flights may arrive at either Terminal 2 or 3, and information on the arrival terminal will be available at least 2 hours prior to the estimated arrival time.

Jet Airways launches new direct flights to Muscat and Doha

Jet Airways announced the launch of its daily direct flights to Muscat from Kochi and Kozhikode (Calicut) and Doha from Mumbai and Kozhikode. With the introduction of these flights, Jet Airways will expand its Gulf route network, effective January 23, 2008.

Jet Airways will introduce its service on the advanced Boeing 737-800 aircraft on these sectors. With the induction of these new flights Kozhikode will be the second city in Kerala to be connected by Jet Airways’ international services to the Middle East.

Announcing the launch of these new flights, Mr. Sudheer Raghavan, Executive Vice President - Commercial, Jet Airways said, “The introduction of Jet Airways’ operations to Muscat and Doha is part of a well planned strategy of the airline to expand its international operations in the Gulf region.”

Boeing Took Record 1,413 Orders In 2007

Boeing on Thursday reported an industry record of 1,413 firm commercial plane orders for 2007, setting up a photo-finish with rival Airbus, which reports its annual order tally later this month.

Boeing's net total -- which excludes orders that were subsequently canceled and takes account of orders converted into different plane models -- beats its previous record of 1,044 in 2006 and tops Airbus's industry record of 1,055 net orders in 2005.

Airbus had 1,204 gross orders at the end of November, not adjusted for cancellations or conversions. It is expected to announce its tally of net orders over the next few weeks.

Between them, Boeing and Airbus are set to post more than 2,500 orders for the year, an industry record easily beating the previous best of 2,057 net orders in 2005.

The massive tally marks the third year of the boom in commercial plane sales, as a resurgence in travel after the attacks of September 11, 2001 pushed airlines to expand and update their fleets.

For each of the last three years Boeing and Airbus have posted more than 1,800 net orders combined. In 2004, they barely had 600 orders between them.

Boeing's orders alone this year are worth more than USD$150 billion at list prices. The single-aisle 737 remains its most popular plane, followed by the new, lightweight 787 Dreamliner, which is set to have its maiden flight in the next few months.

The boom has been led by carriers from the oil-rich Middle East, expanding Asian airlines and aircraft leasing firms. Large European and US airlines -- the traditional cornerstones of the market -- have played a smaller role.

Industry analysts do not expect this year's orders to set new records, as many big buyers have made large orders and high oil prices are already forcing some airlines to cut capacity.

Boeing said earlier on Thursday it delivered 441 commercial aircraft in 2007, its best performance in six years and up 11 percent from 2006.

The year tally is in line with Boeing's forecasts, and the highest since it delivered 527 planes in 2001. But it may fall slightly short of rival Airbus, which had delivered 410 aircraft by the end of November, three more than Boeing at that time. (Reuters)

Bombardier Gets USD$136 Million Of Plane Orders

Bombardier said on Thursday that Libyan Airlines agreed to buy two of its CRJ900 NextGen regional jets in an order valued at about USD$76 million.

The order is a conversion of two options Libyan Airlines had taken with its firm order for three CRJ900s on June 14 and stems from its fleet renewal plan.

Bombardier said that including Thursday's order, 229 CRJ900 or CRJ900 NextGen airliners are in service or have been ordered by 17 airlines around the world.

The world's third-largest civil aircraft maker also said Spain ordered two of its Bombardier 415 amphibious water-bombers.

The contract, valued at USD$60 million, includes technical support, training and other equipment for Spain's fleet of 22 Bombardier fire-fighting aircraft. (Reuters)

AIRPORT NEWS

BBI given go-ahead for Globe Ground Berlin sale

Right: BBI has been given the go-ahead to sell its 51% stake in the loss-making ground handler Globe Ground Berlin

Berlin’s municipal authorities have given the go-ahead for airport operator BBI to sell its stake in ground handler Globe Ground Berlin. BBI announced its intention to sell its 51% shareholding last June.

With almost 1,700 employees, GlobeGround Berlin offers a complete package of ground handling services at Berlin’s three airports. Labour unions are concerned at the proposed sale, fearing increased pressure on wages. “We will strongly defend against the sale,” says works council chief Achim Pike. Employees particularly fear the negative impact of low cost carriers on their working conditions.

GlobeGround handles 80% of all traffic in Berlin, but in its last financial year posted a loss of about US$1.18 million (Euro 800,000). The company’s financial performance in 2007 is expected to improve just slightly.

Lufthansa holds the remaining shares in the company and is also willing to divest, but no potential investors have yet appeared. GlobeGround’s operating permit expires in 2011, when the new Brandenburg airport is due to open.

Passport cards promise shorter US security queues

From the start of next month US citizens traveling to Mexico, Canada and the Caribbean will be permitted to use new passport cards that can be scanned from a range of 6m (20 feet). The cards differ from the new e-passports, which guards must swipe close to a reading device to unlock electronically stored personal data.

The new cards, which are optional, are expected to save time at the border and make the border more secure.

US State and Homeland Security Department officials say the unique identifying number that is transmitted from the passport card to the Customs and Border Protection (CBP) agent is of use only to officials with access to the database where the traveler’s data is stored. Furthermore, the cards contain none of the personally identifiable information that passports contain.

According to the CBP, the passport card uses technology that has been applied successfully in trusted-traveler programs since 1995.

The new passport cards have been developed to satisfy legislation that requires the US Department of Homeland Security to develop a plan to ensure everyone entering the United States is documented and to create a US passport card to facilitate travel between the US, Canada, Mexico, the Caribbean and Bermuda.

Officials hope the passport cards will be in use this spring.

Berlin beats 20 million record in 2007

Right: Berlin's airports handled a record 20 million passengers in 2007, compared with just 13.3 million in 2003

Berlin’s airport operator BBI welcomed its 20 millionth passenger on 30 December – an all time record. “This is an important step in our development,” says BBI’s chief executive officer Dr. Rainer Schwarz. “Berlin grows faster than the average German airport with a rise of 8.3%.”

During the past four years, Berlin has registered a passenger traffic rise of over 50%. In 2003, the airports handled just 13.3 million passengers.

Construction of the new Berlin Brandenburg terminal is expected to commence this summer. But since the projected capacity of this airport is about 22 million passengers annually, a terminal extension might be considered given the current growth rate.

Digital screens installed at Beijing Capital

AirMedia Group has completed the installation of high-definition LCD screens at Terminals 2 and 3 of Beijing Capital International Airport (see: Network CN wins Beijing advertising contract).

AirMedia has upgraded 90 light box displays to 46-inch digital frames at Terminal 2 of Beijing Capital International Airport and began placing clients’ advertisements frrom the beginning of December 2007. By 31 December 2007, the company had installed 328 117cm (46-inch) digital frames and 120 178cm (70-inch) digital frames at Terminal 3 of Beijing Capital International Airport.

The new digital frames at Terminal 3 will begin displaying paid advertisements when Terminal 3 opens for testing at the end of February 2008.
Beijing Capital International Airport is expected this year to become one of the world’s five busiest airports, with more than 64 million passenger movements by the end of 2008.

“As our digital frames are placed at both sides of all 60 boarding gates at Terminal 3, and other prime locations with high air passenger traffic, we believe these new digital frames may optimize the effective reach of our clients’ advertisements, making them a very attractive advertising platform. We will continue to expand the number of digital frames in other airports of our network,” says Herman Man Guo, chairman and chief executive officer of AirMedia.

AirMedia has also installed 328 digital TV screens at Terminal 3.

StarHub wins Changi Wi-Fi tender

StarHub has launched free Wi-Fi access for travellers at Singapore’s Changi Airport (see: Changi Airport to offer free Wi-Fi access). The Wi-Fi specialist won the five-year contract following a tender. The service was launched on 1 January in the public and transit areas of all of Changi’s terminals. The free service can be accessed by anyone with a compatible laptop or personal digital assistant (PDA). The service offers download speeds of up to 512Kbps, which is sufficient to support low-cost calls over the internet using online services like Skype.

Singapore Changi Airport welcomes Mihin Lanka

Singapore is the airline’s second international destination in South East Asia.
The Civil Aviation Authority of Singapore (CAAS) held a ceremony yesterday to officially welcome Mihin Lanka, an airline from Sri Lanka, to operate at Singapore Changi Airport.

Mihin Lanka is the second international carrier from Sri Lanka to mount flights to Singapore. The state-owned airline first began operating six weekly flights between Singapore and Colombo on 24 September 2007 with Airbus 321 aircraft.

At the welcome ceremony, CAAS’ Director-General and CEO, Mr Lim Kim
Choon said, “The launch of Mihin Lanka’s services comes at an opportune time as passenger traffic between Singapore and Sri Lanka has grown by 30% over the past
4 years to reach 275,000 movements for the first 11 months of 2007. Between
January and November 2007, there were over 70,000 visitor arrivals from Sri Lanka, representing a robust 10% growth year-on-year.”

Mr Lim further expressed confidence that the visitor arrivals from Sri Lanka to
Singapore would grow further in the coming years, boosted by new tourism developments in Singapore such as the Singapore Flyer, Formula 1 Grand Prix and the Integrated Resorts.

Mihin Lanka is the fourth airline to operate flight services between Colombo and Singapore. The other three airlines are Singapore Airlines, Sri Lankan Airlines and Emirates. This brings the number of weekly passenger flights on the route to a total of 42. 6 Changi Airport is currently served by 81 scheduled airlines, operating over 4,300 weekly scheduled flights to 189 cities in 60 countries.

CHA Education Foundation’s 2008 scholarship program opens

The Caribbean Hotel Foundation (CHF), the non-profit subsidiary of the Caribbean Hotel Association (CHA), announced the launch of its 2008/2009 Scholarship Program for Caribbean hospitality employees, educators, and students wishing to pursue studies or professional development courses related to the tourism industry.

This year, the Foundation introduces a new online mentoring resource for applicants. Sponsored by Virgin Holidays, the mentoring program facilitates a system through which past and current beneficiaries of the Foundation provide advice and encouragement to people considering applying for a scholarship or grant from CHAEF.

“CHAEF mentors can harness their experience to help others to make more informed decisions about education and career prospects,” observed Jonathan Winfield, Responsible Business Executive at Virgin Holidays. Scholarship application forms, application guidelines, a list of mentors, and additional information about the CHA Education Foundation are now available on the CHF website. Application deadline is March 15, 2008.

The CHAEF offers awards ranging from US $500 to US $5,000, available to worthy applicants who demonstrate a strong commitment to the industry and the potential for future success. Further, corporate awards sponsored by private entities include the Virgin Holidays Tourism Management Scholarship of US $10,000 a year for three years. Likewise, Johnson & Wales University, Miami Campus, offers two scholarships worth $5,000 each for four years, while Interval International offers two scholarship of US $7,000 each.

Requirements to apply for the CHF Scholarship Program includes being a Caribbean national, having a high school (or equivalent secondary school) degree, pursuing a tourism-related educational degree – and demonstrated financial need, among others.

In 2007, CHAEF awarded 26 academic scholarships totaling US$86,500 to promising Caribbean students and industry professionals from 13 Caribbean islands. Applications were received from candidates across the region, with a wide variety of educational interests and industry backgrounds. Among the successful candidates were high school graduates pursuing associate and bachelor degrees in tourism and hospitality, hotel personnel committed to their professional development, and tourism and hospitality university graduates looking forward to advanced degrees and certifications.

The Caribbean Hotel Foundation was established in 1987 as a non-profit organization, through which scholarships and special assistance would be made available for the education of Caribbean hotel industry personnel and students pursuing hotel careers. As part of its mission, the Foundation provides people throughout the Caribbean region with an awareness of the industry’s varied career opportunities, as well as technical and professional development. Since 1987, the Foundation has awarded close to US$1 million in scholarships and grants to applicants who demonstrate a strong commitment to the hotel and tourism industry.

New Beijing Terminal 3 for Air China

Starting in March 2008, Air China will begin using the newly constructed Terminal 3 of the Beijing Capital Airport. The Terminal 3 is the China's largest investment project for airport, and will be the main supporting building for the Beijing 2008 Olympic Games.

The one million square-meter Terminal 3 project also includes a 3,800-meter-long by 60-meter-wide runway, which will accommodate the Airbus A380, the largest airplane in the world. Terminal 3 and its new runway had been started in March 2004, and will double the current passenger capacity of the Beijing Capital Airport in 2015.

"Air China is proud to be the flagship tenant in Beijing's fabulous new Terminal 3," said Mrs. Lan Zhang, senior Vice President of Air China. “Our familiar customers will benefit from the move to this new facility, and our new passengers joining for the 2008 Olympic Games will also be pleased with their state-of-the-art experience here in Terminal 3."

Once in Terminal 3, Air China will launch a variety of advanced systems in order to speed the service process and improve luggage management capability. The move to Terminal 3 is an important step in the growth of Air China, enabling the airline to serve the Olympic Games, launch its enhanced network strategy, and offer world-class flying services to its customers.

For additional airport infrastructure, the new Li-Tian highway will run north of the airport, while the airport railway quickly connects the city to the airport. Passengers may take the city railway from Dongzhimen to the airport transportation center, located at the south side of Terminal 3. The airport will also provide 7,000 parking spaces next to the Terminal 3 building.

United Arab Emirates and Nepal sign air services agreement

Centre for Asia Pacific Aviation: The United Arab Emirates signed a memorandum of understanding on air transport with the Republic of Nepal to increase the number of flights of national carriers in both countries. Both parties agreed to nominate Emirates Airlines, Etihad Airways, Air Arabia and RAK Airways as the national airlines of the United Arab Emirates, and to nominate Royal Nepal Airlines and YETI Airlines as the national airlines of the government of Nepal.

The two governments also agreed to increase the number of flights between the two countries to 28 flights per week for all national carriers. The MOU also amended certain provisions of the Convention on air transport signed between the two countries on the terms of appointment, taxes, air safety, transfer of income, and business activities. The agreement includes terms on exercising fifth freedom by the national carriers on three middle points or beyond points of the two countries, excluding destinations within the limits of the states of India and Thailand.

Air Berlin going long haul in 2008

Centre for Asia Pacific Aviation: Air Berlin announced plans to commence new long haul services to both Shanghai and Beijing in May-08. The LCC will operate the services from London Stansted via its hub at Dusseldorf.

easyJet enters code-share agreement with GB Airways; offers 16 new Summer destinations

Centre for Asia Pacific Aviation: easyJet announced that 32 routes operated by GB Airways for Summer 2008 are now available for sale from easyJet. These include services to destinations including Sharm El Sheikh, the Canary Islands, Corfu, the Greek Islands and Turkey.

In Oct-07, easyJet announced its intention to purchase Gatwick-based GB airways, which operates as a British Airways franchise. The agreement is expected to be completed in Jan-08. However, BA has now terminated all sales for services from 30-Mar-08 onwards. In order to continue to provide competition and choice for customers, easyJet has entered into a code-share agreement and can offer the GB Airways routes through easyJet.com.

In total, easyJet will now offer a choice of 66 routes from Gatwick and a further six from Manchester. The GB Airways Heathrow operation is expected to terminate at the end of Mar-08.

It is intended that GB Airways will continue to operate all routes under the British Airways brand until 29-Mar-08. After this, subject to regulatory approval, the GB services will operate under the easyJet brand and all customers who have booked to travel with GB Airways next Summer will be given the choice of flying with easyJet at the same times or else receive a refund. By Winter 2008, GB Airways will be fully integrated into the easyJet business model, subject to regulatory clearance.

GB airways operates to a total of 39 destinations with a fleet of 15 A320s and 321s from three bases in Gatwick, Heathrow and Manchester. The deal, which is currently in the process of being finalised, is expected to be complete by the end of Jan-08 and will enable easyJet to expand further from its largest base at London Gatwick as well as introduce service to Manchester.

AIRPORT NEWS

Hahn expects five million passengers this year

Passenger numbers at Frankfurt’s Hahn airport have grown from fewer than 500,000 passengers in 2001 to a projected 5 million this year

Frankfurt’s Hahn airport expects to increase passenger numbers this year to 5 million compared with 4.2 million in 2007. Its recently inaugurated runway, which accommodates wide-bodied aircraft, will contribute to the increase, says airport spokesman, Jörg Schumacher.

Hahn airport is popular with low cost carriers, including Ryanair which signed an operating agreement with the airport in 2005, and has increased its Hahn operators graduale since then. Ryanair will have 18 aircraft permanently based at Hahn by 2012, which corresponds with around eight million travellers for Ryanair alone. Hahn expects to handle 9.7 million passengers per year by 2012.

Hahn calls itself the first ‘real low cost airport in Germany’. Apart from Ryanair, WizzAir, SunExpress, LTU and Pegasus also serve the airport. Ryanair remains Hahn’s most important airline, flying to 35 destinations out of Hahn. The low cost giant will add two more aircraft to the airport this year.

Hahn is now Germany’s 11th largest airport in terms of passenger traffic. It handled fewer than 500,000 passengers in 2001, and the projected 5 million passenger throughput for 2008 underlines the airport’s strong growth.

Hahn’s 13,500m²passenger terminal has 22 check-in counters and 4 baggage belts. Passengers have a choice of 10 food and beverage counters and up to nine retail outlets on a combined shopping area of 3.695m².

Weapons seized at Newcastle International Airport

Knuckle-dusters, cleavers and other weapons were seized last year from holidaymakers at Newcastle International Airport in north-east England. Security staff reportedly confiscated thousands of items from passengers at the airport in 2007.

Airport duty manager Jon Sunderland says, “Many are sharp items, some of which are actually illegal and are referred to the police, and all have come from passengers’ baggage. They can range from scissors to replica firearms or even real firearms.”

Passengers have up to one month to reclaim their legal property. Unclaimed items are sold, usually at charity auctions.

Vietnam’s Cat Bi set for upgrade

Vietnam’s Prime Minister has approved a master plan to upgrade the Cat Bi International Airport in the northern port city of Hai Phong by 2015 and 2025. The estimated cost of the project is US$106.5 million.

By 2015, the airport will be upgraded to receive A321 and B767 planes, 800 passengers per peak hour and 17,000 tonnes of cargo a year.

Passenger figures are projected to almost double by 2025 when Cat Bi will be capable of receiving B747-400 and B777 aircraft.

Vienna celebrates its 18-millionth passenger

Helmut Otahal, an Air Malta passenger travelling from Vienna to Malta was confirmed as the airport’s 18-millionth passenger in 2007. Prior to his flight to Malta, he received a surprise reception at the departure gate from Friedrich Lehr, head of aviation at Vienna International Airport, and Carmen Pace, Air Malta’s country manager for Austria.

Lehr says that Vienna International Airport recorded substantial growth last year above the European average. “Between January and November 2007, the number of passengers in Vienna increased by 10.9% compared with the same period last year.”

Otahal is an Air Malta frequent flier and works for an Austrian company that recently opened a branch office in Malta.

Air Malta’s Carmen Pace says the airline is delighted by the Vienna route’s success as more than 35,000 passengers travelled on the airline’s services to Vienna last year. The Malta-Vienna service was first launched 18 years ago, linking the Maltese Islands to Austria, a gateway to Central and Eastern Europe.

Columbia Asia to provide medical services at BIAL

Bangalore International Airport Limited (BIAL) has chosen Columbia Asia Hospitals to provide medical care to travellers and other occupants at the new international airport. The hospital will establish a 24-hour medical care facility and a pharmacy at the airport, which is due to be commissioned on 30 March. The facility will have the latest medical equipment, technology and expertise to handle emergencies as well as routine medical cases.

Nandakumar Jairam, chairman of Columbia Asia Hospitals, says, “We will have a team of dedicated doctors for this new facility. The team will include a physician, paramedics, nurses, people to man the pharmacy and a full back-up team. We will also have three ambulances stationed at the airport.” The team will undergo formal training as per the requirements of the Airports Authority of India and be trained in both basic and advanced life support.

Albert Brunner, CEO of BIAL, says, “BIAL has chosen Columbia Asia Hospitals after a comprehensive tender process. It has a proven track record of providing effective medical care facilities. We are convinced that together we can cater to the passengers’ medical needs, as well as the disaster response services at the new Bangalore International Airport.”

Hotel room rates in India rise 40% but market to be handled with care

Demand for upscale hotel rooms in India is on the rise, and so are prices, according to Jonathan Worsley, co-organiser of the Arabian Hotel Investment Conference (AHIC), now in its fourth year.

Recent figures bear out this optimism with room rates in the major metropolitan centres rising nearly 40 per cent this year over 2006, while global names such as Shangri-La, Four Seasons, Marriott and Hilton have all announced major expansion plans for India.

“India is gearing up to accommodate international interest, both in business and leisure sectors, in a country poised for rapid growth,” said Worsley.

Capitalising on confirmed attendance, and requests, by decision makers from all sectors of the hotel industry, the Arabian Hotel Investment Conference in Dubai will devote the key opening session (on May 3) to the potential opportunities and pitfalls of the burgeoning hotel investment market in India.

According to Worsley, the two regions – India and the Gulf States - share many characteristics in the development of their hospitality sector.

He said that the inclusion of detailed presentations and analysis on India would be of interest to both regional and international developers, investors, architects, operators and consultants focused on the industry.

“There is scarcely a week that goes past without another announcement of a new project in Arabia, and recently India has joined this explosive development as well. Given the large population, the economic boom and the pent-up demand for hotel accommodation the potential for India is vast," he said.

The key sessions on the first day of AHIC 2008 are devoted to India’s hotel development and will feature topics such as market trends, industry overviews, investment and growth opportunities and business development challenges.

"Already, we are seeing many regional names entering the Indian market - Emaar, Nakheel, ETA Star, KM Properties and Dubai Properties have all announced plans for India. There is perceived potential in every sector from luxury palace resorts to branded budget chains and executive residences," he continued.

"This buoyant scenario aside, there are difficulties associated with investing in this market and the India Summit at AHIC 2008 will address these issues," said Worsley.

His view is borne out by one of the key Middle East players, Kingdom Hotel Investments. Development Director, Tim Hansing, has been keeping a watching brief on opportunities for several years.

"Difficulties of obtaining suitable land, bureaucracy associated with construction and constraints of infrastructure mean India is an expensive opportunity," he cautioned.

"Indian assets do not come cheap, and while there is clearly an under capacity in the hotel sector, international investors are having to compete with local money (investors) and places a different risk perception on future yields,” said Hansing.

The India Summit at AHIC will take place on the opening afternoon (May 3; the conference will run until May 5, prior to the Arabian Travel Market). More than 1,000 delegates are expected to attend, with almost half of these from outside the Middle East region.

Surjit S Bhalla, Managing Director, Oxus Research and Investments; Abhijit "Beej" Das, Managing Director (India), Molinaro Koger; Raymond Bickson, Managing Director & CEO, Taj Hotels & Resorts & Palaces; KB Kachru, Executive Vice President, South Asia, Carlson and Gaurav Bhushan, Senior Vice President, Development Asia Pacific, Accor Hotels are some of the India panel experts.

The Arabian Hotel Investment Conference will run from May 3-5, 2008 at Dubai’s Madinat Jumeirah Convention Centre and is jointly organised by The Bench and MEED.

ChinaContact congratulated USA for becoming an approved tourism destination for Chinese tourists

ChinaContact, the market entry specialist for the Chinese tourism industry, welcomed the most recent addition to the approved tourism destination list for Chinese tourists - United States of America. The bilateral agreement signed by the US and China in December sets the way for implementation of open tourism promotion of US destinations in the Chinese market from the Spring.

Speaking on the China Business Show recently, ChinaContact Managing Director Roy Graff was optimistic about what this means for growth in visitor numbers from China to America while sounding caution of the need for careful implementation. He explained that experience in Australia and Europe of Chinese leisure tourism can show the US tourism industry how to grow this market sustainably. While potentially huge, the market is still in its infancy and requires specialist knowledge and the correct strategy for local marketing and sales campaigns. Much depends on how the two governments will decide to implement the agreement and decide on who will be allowed to supply services to the new tourist groups.

Closer to China, congratulations to TAT (Tourism Authority of Thailand) for receiving the Travel Weekly China award last month in Beijing for best short haul destination and for its marketing and promotion activities in China.

ChinaContact congratulated also its China partner TLM-China Marketing co., which has been providing marketing and promotion support for TAT throughout China as extension of TAT's offices in Beijing and Shanghai. TLM-China represent TAT, Royal Orchid Holidays, Amari hotels and Bangkok Airlines. Together with ChinaContact they offer representation and GSA services to International destinations, hotel chains, airlines and tour operators. Their experience of selling to the Chinese market and their intimate knowledge of the key players in the travel trade is unique and invaluable to new destinations wishing to promote themselves in China.

Qatar Duty Free Announces US$1 Million Winner

Doha, QATAR – Qatar Duty Free, a subsidiary of Qatar Airways, has announced the winners of its biggest ever raffle prize draw turning one lucky passenger into an instant millionaire and two others into luxury car owners.

Lucky winner, Varkey Thomas, from India, won a whopping US$1million in the second millionaire draw held at Doha International Airport.

“I am so happy, this really is a gift from God,” said Varkey after learning of the win.

Mr Thomas, 55, who is married with four daughters, works as a General Manager for an offshore company in Qatar. He said the news had brought “great joy” to his family. The Thomas family have been in Doha for 23 years and bought the winning ticket before boarding flight QR 264 to Cochin to visit family in their hometown.

The Dollar Millionaire raffle was launched in May 2006 with chances of passengers winning extremely high as each draw is made after 5,000 tickets are sold. Departing and transiting passengers at Doha International Airport are able to purchase raffle tickets, each priced at QAR950.

The prize-winning draw was held with two other draws for luxury cars – the first time Qatar Duty Free has held three raffles on the same day.

A BMW 650i convertible will be taken home by Mohammed Issa Al Omari, a Jordanian national living in Qatar. A Mercedes-Benz CLS 350 was won by Canadian Iyad Mohamad Saad, also living in Qatar.

Qatar Duty Free Deputy General Manager Krishna Kumari oversaw the draw, inviting passengers to pick the winning ticket.

“Qatar Duty Free has enjoyed tremendous success since launching the Qatar Riyal Millionaire Draw four years ago. With the newly-launched dollar millionaire draw last year, we have taken a huge step forward by increasing the prize money on offer by more than 300 per cent,” she said.

“Following the success of the first dollar millionaire draw, I look forward to welcoming many more instant millionaires over the next few months and years to come.”

Added Kumari: “The beauty of this draw is that it is not restricted to just one prize. Every time 5,000 tickets are sold, we will have a raffle draw at Doha International Airport, so this shows that the chances of becoming an instant millionaire are extremely high.

“This draw brings joy and excitement to the lives of a few lucky winners. We look forward to drawing more money-spinning winning tickets very soon.”

Qatar Duty Free, a subsidiary of Qatar Airways, has been enjoying significant growth year on year, helped by a ramping up of its presence in the departures and arrivals area at Doha International Airport, the airline’s operational hub.

The airline operates a modern fleet of 60 Airbus and Boeing aircraft to 81 destinations worldwide from Doha. The fleet size will almost double to 110 jets by 2015.

Boeing, South Korea’s Jeju Air Complete Order for 737-800s

SEATTLE, Dec. 31, 2007 — The Boeing Company [NYSE: BA] today announced that South Korea-based Jeju Air has ordered five Boeing Next-Generation 737-800s to meet future growth plans. The new airplanes are valued at US$370 million at list prices.

The 737s will be the first Boeing airplanes to enter the Jeju Air fleet. The airline currently operates five regional jets of smaller capacity.

Jeju Air, in a statement, expressed its confidence that “the 737-800 aircraft exactly matches our long term growth requirements for our routes within Korea domestically and to Japan, China and other Asia Pacific regions.

“We also believe that Boeing’s modern and enhanced aircraft and initial support will bring great benefits for Jeju Air,” said the airline.

“The opportunity to establish a new customer relationship is always an exciting one,” said Stan Deal, vice president, Asia Pacific Sales, Boeing Commercial Airplanes. “Jeju Air has a bright future, and the superior economics, reliability and maintainability of the Next-Generation 737-800 are important attributes in helping Jeju Air successfully meet its growth plans.”

Known for its reliability, fuel efficiency and economical performance, the 737-800 has been selected by leading carriers throughout the world. The single-aisle jet, which can seat between 162 to 189 passengers, can fly 260 nautical miles farther and consume 6 percent less fuel per seat while carrying 12 more passengers than the competing model.

Boeing has recorded orders for more than 4,400 Next-Generation 737s, and has unfilled orders for more than 1,900 airplanes worth more than $140 billion at current list prices.

GMR Hyderabad International Airport awards Tata Teleservices fixed line services contract

Centref or Asia Pacific Aviation: GMR Hyderabad International Airport Limited (GHIAL), the developer of Rajiv Gandhi International Airport in Shamshabad, has awarded the fixed line services management contract to Tata Teleservices Ltd (TTSL). The contract is valid for a period of five years.

TTSL has emerged as the preferred bidder from among several reputed players in a highly transparent and competitive bidding process. The company has been selected based on its technical and financial criteria, including its experience, expertise, capability and know-how in the telecommunication business.

As per the agreement, TTSL shall provide Fixed Line (Voice & Data) services at the new international airport in accordance with good industry practices and specifications of GHIAL.

Apart from setting up and maintaining its back office and telecom exchange, TTSL will provide the following facilities at the new airport:

• Primary Rate Interface lines with Direct Inward Dialing facility
• Primary Rate Interface lines
• Integrated Services Digital Network lines (for Video Conference) - BRI
• Integrated Services Digital Network lines with internet port (for internet backup)
• Leased Lines
• Public Switch Telephone Network lines
• Virtual Private Network (VPN) connectivity (For GHIAL video conference with GMR offices)
• Internet Bandwidth (Fibre linked upto PTB)
• HOT lines
• Hunting facilities (for Landline)
• Dual redundant paths to the EPABX from separate exchanges
• Premier support i.e. uptime of minimum 99.99999%
• 10,000 telephone numbers in series to be allotted to the Airport.

Emirates chief says airline plans growth

DUBAI, United Arab Emirates - Emirates Airline has ordered a jaw-dropping 245 new widebody planes, but the company's president shuns suggestions that he wants to create the world's biggest airline.

"I'm not bothered personally if that makes us the biggest or not," Emirates President Tim Clark said in an interview with the Associated Press.

Aviation analysts say that in fact the airline's unprecedented rate of growth would make it the world's largest within the next decade. At last month's Dubai Air Show, Emirates ordered 120 Airbus A350XWB jets, 11 additional A380 super-jumbos -- increasing its total order to 58 -- and a dozen Boeing 777-300ERs -- which more than double its current fleet of 112 planes.

The orders, amounting to $34.9 billion at list price, bring the value of the airline's total order book to an unheard of $60 billion.

Clark, who helped establish the company in 1985 and has served as its president ever since, says his main aim is for the airline to keep its focus and remain an industry trendsetter in terms of quality of service.

"The business model saw us focusing on the geocentricity of Dubai, focusing on the fact that within that 8-hour flying zone we had 4 billion people, " he said.

Emirates currently serves 99 cities in 62 countries with new ones being added on an average of one every two months. A second U.S. route, between Dubai and Houston, was inaugurated in December. Other North American destinations are New York and Toronto, and Clark said routes to two more cities in the United States, which he declined to name, were in the plan for next year.

At a time when many airlines around the world are feeling the pinch of high fuel prices and a declining dollar, Emirates expects to top $1 billion in profits in the fiscal year ending March 31 on revenues of $8.1 billion. That would represent an 18.5 percent increase over last year's figure of $844 million.

This is partly due to the currency peg between the UAE's dirham and the U.S. dollar. Emirates reports in dirhams but a large proportion of its earnings is in euros and pounds sterling, and the dollar's slide "actually makes us look good," Clark noted.

Emirates also has benefited from the general economic boom in the United Arab Emirates, whose thriving economy has been fueled by high oil prices and a rapidly growing tourism industry.

Statistics show that nearly half of its passengers nowadays are people making connections in Dubai.

Over the past 15 years, Dubai International Airport has developed into one of the largest hubs in world aviation. A new airport, said to be the world's largest, is now under construction near Jebel Ali, a massive complex comprising a port, airport, residential areas, hotels and a free trade zone about 12 miles from the city center.

Emirates Airline is currently wholly government owned, but its chairman Sheikh Ahmed Bin Saeed Al Maktoum, last month indicated that 30 percent of the company may be sold in public markets. He did not elaborate further.

Emirates' operating costs are significantly lower than those of its European or U.S. rivals, according to Michael Dyment, an aviation analyst at Nexa Capital Partners, a Washington D.C. corporate finance group.

He credited Dubai's zero tax rate, the airline's ability to tap credit markets to buy new airplanes because of Dubai's good credit standing, and the fact that legacy costs like pension burdens are low.

It doesn't hurt to operate in a country where the laws prohibit trade unions.

"One of the key advantages they have over others is that the airline itself is not subject to the same labor rules," Dyment said. "They are able to keep organized labor away, so they don't have a unionized environment that has been detrimental to other carriers."

John Strickland, director of JLS Consulting, a London-based aviation consultancy firm, noted that the airline is almost unique in civil aviation because it has kept the same top management team since inception. They have developed a product that has allowed Emirates to capitalize on high-end fares in business and first class on long-range routes.

"Dubai has a very good geographic location in terms of offering services to European consumers going on to Asia, and this has been which is a strong selling point for the airline," he said. "But Emirates has also been very good at developing traffic flows that bypass Europe, like from China to Africa. This irritates European carriers who also perceive Emirates, rightly or wrongly, as subsidized by the government."

Clark angrily denied persistent criticisms that the 20-year old Emirates carrier was receiving preferential treatment from the Dubai government in terms of lower fuel costs and other benefits.

"Categorically, unequivocally and emphatically, we have never been subsidized," he said.

Clark, a veteran of the now-defunct British Caledonian airline, joined Emirates the day it was founded two decades ago after spending a decade working for Bahrain's Gulf Air, once the pre-eminent carrier in the region.

He welcomed the rise of other airlines in the Gulf region, such as Etihad, Qatar Airways or Oman Air.

Those airlines, along with a host of budget carriers, have been set up since the 1990s to take advantage of the unprecedented boom in travel via the Gulf. The Middle East's three main budget airlines -- Air Arabia, Jazeera Airways and Atlas Blue -- have already grabbed five percent of the region's air travel market, and analysts say that portion is set to increase in coming years as booming Gulf economies attract more fliers.

"On the basis that the global market is an ever-growing thing, and as long as they go about doing things the same way we do," Clark said, "there's no reason why they shouldn't be as successful as we are without getting at each other's throats."

Date posted: 02-Jan-08

AIRPORT NEWS

China embracing mobile boarding passes

Right: China Southern Airlines customers can now receive boarding passes on their China Mobile phone

Increasing numbers of Chinese airlines are implementing new mobile and internet booking services with two-dimensional (2D) barcode technology in the light of the new International Air Transport Association (IATA) global standard for 2D barcodes (see: Mobile check-in).

In April 2007, China Southern Airlines together with China Mobile’s Guangzhou Branch launched a new Mobile E-Boarding Pass, which is currently available at China Southern Airline’s worldwide hub at Baiyun International Airport in Guangzhou. This new programme marks the first time that a mainland Chinese carrier and mobile communication operator have offered a Mobile E-Boarding Pass service.

Passengers log on to the airline’s Chinese website to complete their e-ticket payment, select their seat and choose to have the boarding pass electronically transmitted to their China Mobile phone. The passenger then presents their mobile phone at the airport check-in counter, where the stored 2D-code message on the mobile phone is fed into a scanner. The companies claim that the passenger’s boarding pass will be printed within five seconds.

Spring Airlines, a low-cost carrier in China, also launched a mobile and internet booking service at the end of November 2007. Already, 70% of Spring Airlines’ business-class tickets are booked via internet payment and the airline predicts that mobile internet services will further change the traditional way to book air tickets.

New US lithium battery baggage ruling

US officials have introduced a ban on the carriage of loose lithium batteries in checked luggage. They will only be allowed in checked luggage if they are installed in electronic devices and in carry-on baggage if stored in plastic bags. Each passenger is limited to two extended-life spare rechargeable lithium batteries in carry-on baggage. The FAA has found that the current aircraft cargo fire suppression system would not be able to cope with a fire if non-rechargeable lithium batteries were ignited during a flight.

“Doing something as simple as keeping a spare battery in its original retail packaging or a plastic zip-lock bag will prevent unintentional short-circuiting and fires,” says Krista Edwards, Deputy Administrator of the US Department of Transportation’s Pipeline and Hazardous Materials Safety Administration.

Safety tips regarding packing, including battery, aerosol and other risks can be found at http://safetravel.dot.gov

MIAL first Indian airport to implement CUSS

Mumbai International Airport (MIAL) is set to become the first Indian airport to implement Common Use Self Service (CUSS) in 2008. MIAL is scheduled to install CUSS kiosks onsite, while plans are also underway install 20 offsite CUSS kiosks, predominantly at hotels.

The CUSS kiosks, on and offsite, will allow passengers to perform an automatic check-in, cutting down on check-in time by more than half for passengers with check-in luggage and offering an even quicker option for those without any check-in luggage.

According to sources, MIAL is anticipating that the CUSS implementation will greatly ease passenger congestion. While the Common Use Terminal Equipment (CUTE) systems exists at all international airports in India, CUSS is notable by its absence, considering that it is already widely operated at major American, European and Asian terminals. CUTE allows an airport to efficiently organise gate and check-in counter allocations, as well as system management.

Singapore Air, China Eastern Say Acquisition Deal Is Fair

China Eastern and Singapore Airlines on Wednesday rejected rival Air China's parent's view that the Singapore flag carrier's USD$920 million acquisition of a China Eastern stake was unfair to investors.

China National Aviation Corporation, parent to the world's biggest airline by stock market value and a big China Eastern shareholder, had on Tuesday urged a return to the negotiating table to work out a higher price.

Shares in China Eastern climbed 4.4 percent on Wednesday on investor hopes of a better offer, ending the morning up 2 percent.

Responding to CNAC, Singapore Air on Wednesday called its offer to buy 24 percent of China Eastern -- alongside Singapore's government investment arm Temasek -- more than fairly priced in a deal that needed no tweaking.

A senior China Eastern executive said that the deal was focused on the longer term but warned that its share price would plummet should Air China's parent succeed in getting shareholders to vote down the deal.

Stockholders, including CNAC with more than 12 percent of China Eastern's Hong Kong shares, are due to vote on the deal on January 8.

"The price is fair and mutually agreed between all the parties. It is the maximum justified on the business fundamentals," Singapore Airlines spokesman Stephen Forshaw said.

"Singapore Airlines is a long-term partner, not a short-term financial trader, and this transaction will be the start of an important strategic relationship, which will strengthen China Eastern's competitive position."

Analysts say Air China, which completed a two-way investment with Singapore Airlines rival Cathay Pacific last year, feared formidable competition from a global player that has long coveted greater access to the booming Chinese travel arena.

CNAC's strongly worded comments came days after news emerged that Air China Chairman Li Jiaxiang had been appointed head of the country's civil aviation regulator, which analysts say would bolster Air China's objections to the deal.

Indeed, CNAC and Cathay had themselves pondered buying into China Eastern months ago, but then announced in September it would abandon that effort for at least three months.

"Air China's own international business is bleeding losses. They can't help us," argued China Eastern accounting department general manager Wu Longxue, who had joined his company's global investor roadshow over past months, to plug the deal.

"It's different with Singapore Air: We're getting their management expertise, operating experience and brand." (Reuters)

Australia, US to start open-skies pact talks

CANBERRA - AUSTRALIA and the United States will start talks on an open-skies aviation deal within the next six weeks to open up the lucrative trans-Pacific route between the two countries, Australia's government said on Wednesday.

Transport Minister Anthony Albanese gave approval for formal talks to start in Washington next month, in a move which could see more US carriers fly to Australia via ports in Asia, such as Tokyo.

A spokesman for Albanese said the meetings would be held between Feb 12-14.

A deal could clear the way for Australian airline Virgin Blue Holdings to begin flights to the United States on its carrier V Australia by the end of this year, edging open one of the world's most lucrative and protected long-haul routes.

Under the current aviation treaty between Australia and the United States, airlines based in either country can only launch four weekly flights on the route in the first year.

V Australia, which is 62 per cent owned by Toll Holdings, has asked for 10 weekly flights, having already placed an order for six long-range Boeing 777-300ERs with options to buy another six of the jets.

Australia's former conservative government rejected repeated requests from Singapore Airlines for permission to fly from Australia to the United States, protecting flag carrier Qantas Airways from more competition on the route.

The new centre-left Labour government, elected in November, has not yet said if it supports the entry of Singapore Airlines on the route. Singapore wants access to new markets to help offset competition from low-cost carriers in Asia.

United Airlines is currently the only competitor to Qantas in non-stop flights to the US. It runs 14 flights a week to Australia. Qantas operates 48 flights a week and reportedly generates as much as 20 per cent of its profits from the route.

A 2006 report for Singapore Airlines said Qantas charged 38 per cent more for flights from Sydney to Los Angeles than on the more competitive 'kangaroo route' from Sydney to London.

Singapore Airlines estimates that opening the Pacific route to more competition could increase the number of travellers between the United States and Australia by up to 8 per cent. -- REUTERS

DOT announces final decision for 2009 China flights

U.S. Secretary of Transportation Mary E. Peters announced a final decision to select US Airways to inaugurate its first U.S.-China service in 2009 as well as to award additional U.S.-China passenger flights to American Airlines, Continental Airlines and Northwest Airlines also for 2009.

The Department’s decision confirms its tentative decision issued in a Sept. 25 show-cause order. The awards are the result of an agreement signed in July by Secretary Peters and her Chinese counterpart to open up new opportunities between the two countries that will double the number of daily flights allowed between the United States and China over the next five years.

“We are taking every opportunity to make it easier to do business and more convenient to stay connected with one of our largest trading partners,” said Secretary Peters. “These new direct routes will provide more options for both business and leisure passengers traveling between the United States and China.”

U.S. Airways will fly between Philadelphia and Beijing, while American, Continental and Northwest each will use the awards to add a new daily flight to their existing U.S.-China service. American will begin Chicago-Beijing service, Continental will operate a new flight between Newark /New York and Shanghai, and Northwest will fly between Detroit and Shanghai. All 2009 services must begin on or about March 25, 2009.

The new agreement with China also will result in two new daily flights to begin next year. In September Secretary Peters announced final decisions awarding Delta Air Lines a new daily flight between Atlanta and Shanghai and United a new daily San Francisco-Guangzhou service. Both carriers plan to begin the new flights in spring 2008.